Mood in arable markets is leveling off

After a hopeful rise in the Countus Arable Farm Index earlier this month, the Index is now bending downwards again. This year's high was reached in week 15, but then the Index fell again. This is under the influence of lower prices for arable crops.

De Countus Arable Farm Index found the . last month way up† That increase continued for another 2 weeks. At the time, this was due to a revival in the potato and onion market. The level of the Arable Farming Index currently stands at 66 points, well below the starting point in 2004.

Although prices remained below the cost price of potato cultivation, prices (both on the futures market and on the physical market) rose somewhat. Ultimately, the Cash Settlement settled at €5,80, the highest level this season.

Stabilized potato market
The potato market has stabilized somewhat, but the question is whether an upward trend can be started. This in the hope that it will give the Index a boost. The average stock market quotation for coarse yellow seed onions also crept out of the trough.

In week 5, for example, €7,25 was quoted, while in week 15 it was already €9,75. However, this increase has already leveled off and a slight decrease is now underway.

Wheat price rise
The wheat price on the Matif in Paris also rose in week 15 to a highlight† After that week, however, a sharp decline started, under the influence of rain and large closing stocks. This decrease has already turned into an increase. On Wednesday, May 2, the stock market closed at almost €175 per tonne.

The above may be an impulse to make the market rise again in the near future. For the time being, however, the Index is expected to remain well below the 2004 level.

Anne-Jan Doorn

Anne Jan Doorn is an arable expert at Boerenbusiness. He writes about the various arable farming markets and also focuses on the land and energy market.

aj.doorn@boerenbusiness. Nl

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